FPIs Invest ₹22,615 Crore in February, Highest Monthly Inflow in 17 Months

Foreign portfolio investors turned net buyers of Indian equities in February, investing ₹22,615 crore. The inflow marks the strongest monthly buying in 17 months and follows a prolonged period of heavy withdrawals from domestic markets. 

Inflows Reverse Earlier Outflows 

The renewed investment comes after FPIs pulled out ₹35,962 crore in January, ₹22,611 crore in December, and ₹3,765 crore in November.  

Despite February’s recovery, total net outflows in 2025 still stand at ₹1.66 lakh crore, equivalent to $18.9 billion, making it one of the toughest phases for foreign participation. 

Earlier selling was attributed to currency volatility, global trade tensions, concerns around potential US tariffs and elevated market valuations.  

The recent turnaround has been supported by an interim India–US trade understanding, moderation in equity valuations and improved corporate earnings momentum. Q3 FY26 earnings grew 14.7%, reinforcing confidence in the growth trajectory. 

Sectoral Trends and Market Drivers 

Buying activity was concentrated in financial services and capital goods, while the IT sector continued to face pressure, witnessing outflows of ₹10,956 crore amid concerns around AI-led disruption. 

The rupee’s stability below ₹91 per dollar has provided additional comfort on currency-adjusted returns. 

Read More: India’s Forex Reserves Fall By $2.119 Billion To $723.608 Billion! 

Conclusion 

February’s strong inflow indicates a selective rebuilding of foreign exposure in Indian equities. While geopolitical risks and crude price movements remain monitorable, improving earnings visibility and valuation comfort are supporting renewed investor confidence. 

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